Vericel (VCEL) 2024 Truist Securities MedTech Conference summary

Financial performance and guidance

• Achieved strong Q1 results, exceeding expectations and raising annual guidance by $1 million, reflecting early upside in both MACI and Burn Care franchises.

• Maintains a prudent approach to guidance due to early-year uncertainty, especially in Burn Care given product volatility and launch dynamics.

• Seasonality trends for MACI remain consistent, with a significant Q4 step-up and more even performance across quarters due to a larger surgeon base.

MACI arthroscopic launch and growth strategy

• Anticipates FDA approval and Q3 launch for MACI arthroscopic delivery, with regulatory, instrument, and pre-commercial activities underway.

• Sales force and physician training are ongoing, aiming for readiness at launch; training is designed to be straightforward for both existing and new users.

• Early adoption expected from current MACI users, with new surgeons anticipated to ramp up quickly due to familiarity with arthroscopic techniques.

• Plans to add 10-12 commercial staff, including junior reps and arthroscopic specialists, to support the expanded surgeon base.

• No major compensation changes for sales reps, but incentives will be tied to disposable instrument sales.

MACI growth drivers and conversion rates

• Growth driven by expanding the number of biopsying surgeons, increasing biopsies per surgeon, and price; experienced surgeons show higher conversion rates (40-60%+).

• As the surgeon base matures, conversion rates and biopsies per surgeon are expected to become dominant growth drivers.

• Rep productivity has sustained growth, with territory splits based on volume/geography rather than revenue thresholds.